- FBI admits it uses hacker tools to investigate crimes - It's been
keeping software security flaws secret to keep tabs on suspects.
That could end up making some members of the public less safe.
FTC and Wyndham end hotel data protection feud - Resort chain
promises to lock down customer info Bates Motel - Hotel chain
Wyndham Resorts has agreed to settle its long-running case with the
FTC over its handling of customer data.
Army National Guard announces 13 new cyber units across 23 states -
The U.S. Army National Guard announced plans to activate 13 new
cyber units that will be spread throughout 23 states by the end of
fiscal year 2019.
Keep it private: Security/privacy - What do you get when you mix the
avalanche of data that pours from every computing crevice, the
proliferation and interconnectedness of apps and portable devices
such as Fitbits, persistent criminals out to steal information, lax
or incomplete data protection laws and a population proficient in
gaining access to and moving information around?
Half of law firms do not have a data protection committee - As
corporations struggle to prepare against massive breaches like those
that have rattled the industry over the past year, two reports by a
legal competitive intelligence group shed light on how perspectives
are shifting among legal professionals.
- Critical Infrastructure Protection: Measures Needed to Assess
Agencies' Promotion of the Cybersecurity Framework, GAO-16-152,
- Information Technology: FDA Has Taken Steps to Address Challenges
but Needs a Comprehensive Strategic Plan, GAO-16-182, December 17.
- Pentagon short-handed in fight against cyber attackers - The
Pentagon is in desperate need of reinforcements to prepare to fight
in cyberspace with many of its most highly qualified security
experts leaving the military for better paying jobs.
- LifeLock to pay record $100 million settlement with FTC - The
Federal Trade Commission (FTC) today approved a $100 million
settlement with LifeLock over a 2010 contempt charge, the largest
such payout in FTC history.
ATTACKS, INTRUSIONS, DATA THEFT & LOSS
- DDoS attack knocks Danish Parliament website offline - The Danish
Parliament website folketinget.dk was taken offline Friday morning
in a distributed denial of service (DDoS) attack, parliamentary
press spokesman Finn Tørngren Sorensen confirmed.
Alibaba customers targeted in Phishing attack - Customers of the
online retail giant Alibaba are being specifically targeted with a
Moonfruit experiences DDoS, renewed threats, takes customer sites
down - Moonfruit took its customer websites out of service Monday
for “up to 12 hours,” after suffering a distributed denial of
service (DDoS) attack and being under threat of further
13 Million MacKeeper Users Exposed - The makers of MacKeeper — a
much-maligned software utility many consider to be little more than
scareware that targets Mac users — have acknowledged a breach that
exposed the usernames, passwords and other information on more than
13 million customers and, er…users.
POS attack hits Swiss Cleaners for 10 months - The Rockville,
CT.-based dry cleaning firm Swiss Cleaners suffered a point of sale
data breach that could have potentially stolen the data from every
payment card type used in the eight-store chain for almost one year.
Boston internet service disrupted briefly by DDoS attack - Internet
service in Boston was disrupted on Tuesday in what is being called a
“minor act of cybervandalism,” according to the Boston Herald.
- Target back on naughty list with another security vulnerability -
Did you make a wish list on Target's mobile app? Well Ho ho ho, your
phone number and address are publicly accessible thanks to a newly
- Walgreens, Target shopping apps can expose customer data - Santa
may know if you have been naught or nice, but that's nothing
compared to the amount of information Walgreens and Target collects
from its shopping app users.
- Teen nets $150K from Chinese airline hack - A Chinese teenager
hacked into the website of a Chinese airline, stole the information
of hundreds of passengers and then used it to defraud them into
paying additional fees for their flights, netting a cool $150,000
for his efforts.
Return to the top
of the newsletter
WEB SITE COMPLIANCE -
We finish our review of the
FFIEC interagency statement on "Weblinking:
Identifying Risks and Risk Management Techniques."
(Part 10 of 10)
B. RISK MANAGEMENT TECHNIQUES
Managing Service Providers
Financial institutions, especially smaller institutions, may
choose to subcontract with a service provider to create, arrange,
and manage their websites, including weblinks. The primary risks for
these financial institutions are the same as for those institutions
that arrange the links directly. However, if a financial institution
uses a set of pre-established links to a large number of entities
whose business policies or procedures may be unfamiliar, it may
increase its risk exposure. This is particularly true in situations
it maintains certain minimum information security standards at all
When a financial institution subcontracts weblinking arrangements
to a service provider, the institution should conduct sufficient due
diligence to ensure that the service provider is appropriately
managing the risk exposure from other parties. Management should
keep in mind that a vendor might establish links to third parties
that are unacceptable to the financial institution. Finally, the
written agreement should contain a regulatory requirements clause in
which the service provider acknowledges that its linking activities
must comply with all applicable consumer protection laws and
Financial institution management should consider weblinking
agreements with its service provider to mitigate significant risks.
These agreements should be clear and enforceable with descriptions
of all obligations, liabilities, and recourse arrangements. These
may include the institution's right to exclude from its site links
the financial institution considers unacceptable. Such contracts
should include a termination clause, particularly if the contract
does not include the ability to exclude websites. Finally, a
financial institution should apply its link monitoring policies
discussed above to links arranged by service providers or other
the top of the newsletter
FFIEC IT SECURITY
We begin our series on the FFIEC
interagency Information Security Booklet. This booklet is
required reading for anyone involved in information systems
security, such as the Network Administrator, Information Security
Officer, members of the IS Steering Committee, and most important
your outsourced network security consultants. Your outsourced
network security consultants can receive the "Internet Banking News"
by completing the subscription for at
https://yennik.com/newletter_page.htm. There is no charge for
Information security enables a financial institution to meet its
business objectives by implementing business systems with due
consideration of information technology (IT) - related risks to the
organization, business and trading partners, technology service
providers, and customers. Organizations meet this goal by striving
to accomplish the following objectives.
1) Availability - The ongoing availability of systems addresses
the processes, policies, and controls used to ensure authorized
users have prompt access to information. This objective protects
against intentional or accidental attempts to deny legitimate users
access to information and/or systems.
2) Integrity of Data or Systems - System and data integrity relate
to the processes, policies, and controls used to ensure information
has not been altered in an unauthorized manner and that systems are
free from unauthorized manipulation that will compromise accuracy,
completeness, and reliability.
3) Confidentiality of Data or Systems - Confidentiality covers the
processes, policies, and controls employed to protect information of
customers and the institution against unauthorized access or use.
4) Accountability - Clear accountability involves the processes,
policies, and controls necessary to trace actions to their source.
Accountability directly supports non-repudiation, deterrence,
intrusion prevention, intrusion detection, recovery, and legal
admissibility of records.
5) Assurance - Assurance addresses the processes, policies, and
controls used to develop confidence that technical and operational
security measures work as intended. Assurance levels are part of the
system design and include availability, integrity, confidentiality,
and accountability. Assurance highlights the notion that secure
systems provide the intended functionality while preventing
Appropriate security controls are necessary for financial
institutions to challenge potential customer or user claims that
they did not initiate a transaction. Financial institutions can
accomplish this by achieving both integrity and accountability to
produce what is known as non-repudiation. Non-repudiation occurs
when the financial institution demonstrates that the originators who
initiated the transaction are who they say they are, the recipient
is the intended counter party, and no changes occurred in transit or
storage. Non-repudiation can reduce fraud and promote the legal
enforceability of electronic agreements and transactions. While
non-repudiation is a goal and is conceptually clear, the manner in
which non-repudiation can be achieved for electronic systems in a
practical, legal sense may have to wait for further judicial
Return to the top of
NATIONAL INSTITUTE OF STANDARDS
AND TECHNOLOGY -
We continue the series on the
National Institute of Standards and Technology (NIST) Handbook.
Chapter 4.2 Fraud and Theft
Computer systems can be exploited for both fraud and theft both by
"automating" traditional methods of fraud and by using new methods.
For example, individuals may use a computer to skim small amounts of
money from a large number of financial accounts, assuming that small
discrepancies may not be investigated. Financial systems are not the
only ones at risk. Systems that control access to any resource are
targets (e.g., time and attendance systems, inventory systems,
school grading systems, and long-distance telephone systems).
Computer fraud and theft can be committed by insiders or outsiders.
Insiders (i.e., authorized users of a system) are responsible for
the majority of fraud. A 1993 InformationWeek/Ernst and Young study
found that 90 percent of Chief Information Officers viewed employees
"who do not need to know" information as threats. The U.S.
Department of Justice's Computer Crime Unit contends that "insiders
constitute the greatest threat to computer systems." Since insiders
have both access to and familiarity with the victim computer system
(including what resources it controls and its flaws), authorized
system users are in a better position to commit crimes. Insiders can
be both general users (such as clerks) or technical staff members.
An organization's former employees, with their knowledge of an
organization's operations, may also pose a threat, particularly if
their access is not terminated promptly.
In addition to the use of technology to commit fraud and theft,
computer hardware and software may be vulnerable to theft. For
example, one study conducted by Safeware Insurance found that $882
million worth of personal computers was lost due to theft in 1992.